I found a good deal on a low mile 94 940 Turbo, Engine, and Tranny and am curious if they will drop into an 89 740. If so, I will pick them up and keep them for when I need them. Thanks, John

As McDuck replied, yes.

However you'll need to use the original fuel injection system. You'll need to the change the throttle body and distributor also. The Coolant Temperature Sensor is different, but substitutes backward, but not forward.
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john

I'm not really clear on what you mean "but substitutes backward, but not forward". Could you elaborate a little more? Thanks

The 1994 940T uses LH 2.4 fuel injection. The 1989 740T uses LH 2.2 fuel injection.

The Coolant Temperature Sensor for LH 2.2 has two terminals and is externally grounded. It provides coolant temperature input for the fuel injection system. They are color coded blue.

The Coolant Temperature Sensor for LH 2.4 provides coolant temperature information for both fuel injection and spark control. They are internally grounded and use exactly the same temperature to resistance curve as the LH 2.2 version. They are color coded black.

The two versions of the CTS have the same threads and accept the same electrical connector.

When the LH 2.4 CTS is used on LH 2.2 cars, one terminal is connected to the fuel injection system and is grounded internally, and works. The other terminal is connected to ground through the engine wiring harness and does nothing.

If the LH 2.2 CTS is used on LH 2.4 cars, the fuel injection ECU and spark computer (EZK) are looking at each other through the CTS, and not getting proper signals.

Therefor you can substitute backward, LH 2.4 CTS to the earlier LH 2.2, but not forward (LH 2.2 CTS to LH 2.4)
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john

Yes.